Question

a owner increases the rent office house by 5% at end of each year if current its rent is ₹2500pm how much will be the rent after two years​

Answer 1

Explanation:

2500×5%=125

125×2=250

2500+250=2750$

Answer 2

2756.25 This is what he will pay going into the third year.

Explanation:

This is not as simple as it looks. Is the base number always 2500 no matter how many years go by?

Or do you compound the rent after each Year.

Simple Interest

Rent after the first year

Rent after first year = 2500 + 5%*2500

Rent after first year = 2500 + 125

Rent after first year = 2625

The rent after the second year will be the same.

Compound interest.

Rent after first year is 2625

At the end of the second year it will be 2625 + 2625*5%

Second year payment = 2625 + 2625*5/100

Second year payment = 2625 + 131.25

Second year payment = 2756.25